Who can’t file for bankruptcy?

24 Jan Who can’t file for bankruptcy?

Not everyone can file for a bankruptcy case. And not every type of business can file for a bankruptcy case either. Who can’t file for bankruptcy? Here are some examples:

Insurance companies

Banks of any sort, foreign or domestic

Trusts which are not “business trusts”

Municipalities which are not permitted to do so under the laws of their states

Estates

There are special sorts of bankruptcy cases available for:

Railroads

Securities firms

Family farmers and fishermen

Even if you are the kind of person who might file a bankruptcy, you still have to meet eligibility requirements.

For example you have to have taken credit counseling before you file your case. And you can’t have had a discharge in chapter 7 within 8 years if you are filing a case under chapter 7. You can’t have had a discharge within 4 years if you want to get a new discharge in chapter 13. If you made significant payments in a confirmed chapter 13 case that you took to discharge, you might be able to get a new discharge in chapter 7 within 6 years.

So who you are, what you have done before and what you are trying to do now is very important if you are planning a new bankruptcy case.

Give your lawyer your complete history. It’s vital to know this in order to make smart and accurate decisions.

Jay S. Fleischman is a bankruptcy lawyer with offices in Los Angeles and New York. He can often be found on Google+ and Twitter, where he shares information about consumer protection issues and personal finance.